Friday, 29 August 2014

Fixation of pay of State Government Employees on their appointment in Central Government, subsequent to implementation of CCS (RP) Rules, 2008.

No.12/1/2009-Estt (Pay-I)Government of IndiaMinistry of Personnel, Public Grievances and PensionsDepartment of Personnel & Training

New Delhi the 28th August, 2014

OFFICE MEMORANDUM

Subject: Fixation of pay of State Government Employees on their appointment in Central Government, subsequent to implementation of CCS (RP) Rules, 2008.

The undersigned is directed to say that the method of fixation of pay of State Government employees on their appointment under the Central Government has been spelt out in this Department’s OM No.12/1/94-Estt(Pay-I) dated 24 March, 1994, 3rd January, 1996 and OM NO.13/2/99-Estt (Pay-I) dated 18.6.2001.

2. The question of fixation of pay in cases of appointment from State Govt. to Centrat Govt. consequent upon revision of pay scales on acceptance of the recommendations of the VI Central Pay Commission in the revised pay structure has been considered in consultation with the Department of Expenditure and the President is pleased to decide that in cases of appointment of State Government employees in Central Government on or after 1.1.2006, pay will be fixed in the following manner:-

(a) Where the State Government has revised the Pay scales of their employees on the pattern of VI Central pay Commission at the base index of 115.76 as per AICPI (IW) 2001 series w.e.f. 1.1.2006 the pay of these State Government employees on their appointment under the Central Government would be fixed as follows:

(i) When the appointment is to a post carrying higher Grade Pay, one increment equaI to 3% of the sum of the pay in the existing grade pay will be computed and rounded off to the next multiple of 10. This will then be added to the existing pay in the pay band. The grade pay corresponding to the higher post will thereafter be granted in addition to this pay in the pay band. In cases where the appointment involves change in pay band also, the same methodology will be followed. However. if the pay in the pay band after adding the increment is less than the minimum of the higher pay band to which the appointment is takihg place, pay in the pay band will be stepped up to such minimum.

(ii) Where the appointment is to a post involving identical Grade Pay, the individual shall continue to draw the same pay.

(b) Where the State Government have revised the pay scales of their employees after 1.1.2006 beyond the base index of 115.76 as per AICPI (IW) 2001 series, basic pay of the employees is to be determined first in the Central Scale by reducing the element of DA, ADA, IR etc. granted by the State Government after 1.1.2006 (beyond the base index of 115.76 as per AICPI (IW) 2001 series) and thereafter the pay would be fixed as provided in the clause (i) &(ii) under sub para (a) above.

(c) Where the state Government have either not revised or revised the pay scale of their employees on or after 1.1.2006 below the base index of 115.76 as per AlCPl (IW) 2001 series, basic pay of these employees shall be determined first in the Central scale, by adding the element of D.A. ADA upto base index of 115.76 as per AICPI (IW) 2001 series granted by the State Government and thereafter their pay would be fixed as provided in the clause (i) &(ii) under sub-para (a) above.

3. These orders are applicable to employees of the State Government and local bodies under the State including Emergency Divisional Accountants/Divisional Accountants / local bodies under the State Government appointed under Central Government on or after 1.1.2006.

4. In so far as the employees serving in the Indian Audit and Accounts Department are concerned, these orders issue after consultation with the Comptroller and Auditor General of India.

Sub: Regulation of Transport Allowance at Faridabad Gurgaon, Ghaziabad and Nodia at par with Delhi rates.

Sir,Your kind attention is invited to the OM No. 21(8)2010-E-II (B) dated 01.08.2012 of Ministry of Finance, Department of Expenditure regarding regulation of Transport Allowance at Faridabad, Gurgaon, Ghziabad and Noida wherein instructions have been issued to regulate the Transport Allowance at the rates applicable to ‘Other Cities’ i.e other than 13 classified cities as per the condition laid down in OM no. 21(2)12008-E-II (B) dated 29.08.2008. Issuance of the OM has created panics among the employees posted at these cities. Immediate action is required to be taken to avoid implementation of the OM.

In this connection following points are brought to your kind notice :

1. Ministry of Finance, Department of Expenditure had issued OM 2(4)-E.II (B)/65 dated 05.11.1974 vide which special dispensation was given to Faridabad at Delhi rates in respect of CCA & H RA.

2. 5th Central Pay Commission had made recommendations to grant of transport allowance to Central Government employees to compensate the cost incurred on commuting between the place of residence and the place of duty. Transport allowance was implemented vide 0M No. — 1(13)97-E-Il (B) dated 03.10.1997, according to which, transport allowance was to be regulated on the basis of classification of cities for the purpose of CCA. Para 3.1 of said order Is reproduced below-

The cities referred to as ‘A’ and ‘A-1’ in these orders shall be the same as those classified as such for the purpose of Compensatory (City) Allowance (CCA) in terms of the orders issuedseparately regulating grant of CCA to the Central Government employees.

3. Vide para 4.2 8, 6 CPC had recommended abolition of CCA and increased the rates of transport allowance subsuming the element of CCA. The abolition of CCA was compensated by increasing the rates of transport allowance.

4. Faridabad has been given the status of A-1 city (as being part of the Urban Agglomerate of Delhiat par with NOIDA, Ghazia bad and Gurgan etc.) since 1974 for the purposes of HRA & CCA and since August, 1997 for the purpose of transport allowance as given above. These facilities are being extended to the Central Government employees/officers posted at Faridabad accordingly.

5. It may further be noted that, Ministry of Finance, vide No. 21 (2)/2008-E.ll dated 29.08.2008 has classified 13 cities as A-I/A which, inter-alia, includes Delhi (UA). Delhi (Urban Agglomerate) includes Faridabad, Ghaziabad, Noida & Gurgaon As such, the rates of Transport Allowance admissible for the City of Delhi, automatically stands extended to the other constituents of the Urban Agglomerate.

6. If rate of the transport allowance is reduced the rate payable to other cities, employees posted at Faridabad, Ghaziabad, Noida & Gurgaon will be deceived from the benefit given by the 6th CPC by subsuming the element of CCA in transport allowance as they were being paid CCA at Delhi rates.

7. In view of the above, it reveals that the transport allowance was being regulated on the basis of classification of cities for the purpose of CCA and payment of transport allowance at Delhi rates, to the employees posted at Faridabad is fully justified. This stands already concluded by the orders and judgments of the Hon’ble CAT Principal Bench, New Delhi (copy enclosed for ready reference) as given below-

1) OA No. 483/2005, Judgment dated 16.09.2005.

2) OA No. 2441/2005, Judgment dated 02.08,2006

3) RA No. 296/2010, Judgment dated 14.01.2011.

4) OA No. 368/2011, Judgment dated 21.07.2011.

5) OA no. 459/2011, Judgment dated 05.08.2011.

6) CP No. 302/2011, Judgment dated 30.03.2011.

8. These judgments squarely covers this issue wherein the Hon’ble CAT, Principal Bench, New Delhi had upheld the payment of Transport Allowance at par with Delhi (UA) and the said judgments were accepted by the Government and duly implemented. It appears that the Department of Expenditure has not noticed the above judicial pronouncement and issued the clarification vide OM dated 1” August, 2012, which seem to be in contravention of the directions of the Hon’ble CAT.

It is therefore, requested to kindly take cognizance of the facts and particularly the binding judgments of the Hon’bel CAT, New Delhi as mentioned above to withdraw the latest instructions issued vide ID No. 21 (8)12010-E-Il (B) dated 01.08.2012 for reducing the Transport Allowance on par with “Other Cities”.